Europe Steps Up Financial Backing for Ukraine, Georgia

While some commentators see a softening of Russian rhetoric, Europe steps up efforts to financially support Ukraine and Georgia. 

European Commissioner for Economic Affairs Pierre Moscovici announced a Memorandum of Understanding with Georgia for a two-step program that would allow Tbilisi to get grants and loans for a total of €46 million.

‘The MFA (Macro-Financial Assistance) programme is intended to strengthen Georgia's balance of payments and budgetary position and to support reforms aimed at reinforcing economic governance, increasing social inclusiveness and promoting closer economic integration with the European Union’ reads the note published by the European Commission.  

Amid the current tensions between Russia and the West, Brussels has been called to take into consideration the financial situation of its neighbours and safeguard the interests of its Southeastern member states. Europe might have problems coping with political and social unrest around the corner. 

In order to get its hands on the €46 million, Tbilisi is called to progress with some economic policy measures. 

‘The policy measures focus on public finance management, strengthening the social safety net, reinforcing banking regulation and trade and competition policy measures to support the implementation of the Deep and Comprehensive Free Trade Area with the EU.’

Also on Thursday, Finland wrote on its website its intention to provide additional 500,000 euros. According to Helsinki, the country’s support will total 6.4 million euros.  

‘In addition, Finland has dispatched, among others, OSCE observers, border control experts and election observers, as well as anti-corruption and administrative reform experts, to Ukraine’ the Ministry of Foreign Affairs reported. 

In June European leaders signed Association Agreements with Ukraine, Georgia, and the Republic of Moldova.